NAC693A.710. Conditions for payments of compensation or commissions.

     1. If a contract between a controlling broker and a controlled insurer provides that the controlling broker is to be compensated for insurance business placed with the controlled insurer contingent upon the controlled insurer making a profit on that business, the compensation may not be determined or paid:

     (a) If the insurance is liability insurance, for at least 5 years after the premiums on the insurance are earned.

     (b) If the insurance is other than liability insurance, for at least 1 year after the premiums are earned on the insurance.

     2. Any commissions owed to a controlling broker may not be paid until the adequacy of the controlled insurer’s reserves on remaining claims has been independently verified pursuant to subsection 1 of NAC 693A.750.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)